- 35 -
investigating tax fraud. Helvering v. Mitchell, 303 U.S. 391,
401 (1938); see also Zand v. Commissioner, T.C. Memo. 1996-19;
Hobart v. Commissioner, T.C. Memo. 1995-517. These policies
undergirding the additions for civil tax fraud obviate any
challenges based on theories of double jeopardy and excessive
fines arising from the forfeiture proceedings and petitioner's
criminal trial, and the loss of liberty and fines stemming
therefrom.19
19The Court of Appeals for the Fourth Circuit recently
reaffirmed the principle of Helvering v. Mitchell, 303 U.S. 391,
401 (1938), that the civil tax fraud addition does not result in
double jeopardy in the wake of more recent Supreme Court
decisions that seemingly called that principle into question.
Thomas v. Commissioner, 62 F.3d 97 (4th Cir. 1995), affg. T.C.
Memo. 1994-128; see also McNichols v. Commissioner, 13 F.3d 432,
434-435 (1st. Cir. 1993) (rejecting taxpayer's argument, citing
"an insurmountable wall of cases" beginning with Helvering v.
Mitchell, supra, and then distinguishing civil forfeiture as
entirely distinct from civil tax liabilities), affg. T.C. Memo.
1993-61; United States v. Alt, 83 F.3d 779, 782 (6th Cir. 1996)
(quoting United States v. Halper, 490 U.S. 435, 446 (1989): "the
Government is entitled to rough remedial justice, that is, it may
demand compensation according to somewhat imprecise formulas
* * * without being deemed to have imposed a second punishment
for the purpose of double jeopardy analysis"); United States v.
Brennick, 908 F. Supp. 1004, 1009 (D. Mass. 1995) (reaffirms the
continuing vitality of Helvering v. Mitchell in the wake of
recent Supreme Court decisions in United States v. Halper, supra,
Montana DOR v. Kurth Ranch, 511 U.S. 767 (1994), and Austin v.
United States, 509 U.S. 602 (1993), noting that the Supreme Court
approval of Mitchell in Halper and Kurth Ranch "strongly
indicates that the Court did not intend to overturn Helvering [v.
Mitchell] sub silentio"); Ianniello v. Commissioner, 98 T.C. 165
(1992).
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